protecting yourself from consumer fraud and scams in alberta - a guide to resources

#201 10350 – 124 Street

Edmonton, AB T5N 3V9

Phone: 780.451.5285

Fax: 780.451.2341

LegalResourceCentre

You should not rely on this

booklet for legal advice. It

provides general information on

Alberta law only.

FREE

in Alberta

Updated September 2008

1. General Information and Tips for Prevention ...........................................................................2

2. Advance Fee Schemes ...................................................................................................................3

3. ATM, Credit Card and Debit Card Fraud ....................................................................................4

4. Contract Fraud ................................................................................................................................5

5. Financial Abuse ...............................................................................................................................6

6. Home Renovation Fraud ...............................................................................................................7

7. Identity Theft ...................................................................................................................................9

8. Internet, E-Mail and Online Shopping Fraud ......................................................................... 11

9. Investment and Mortgage Fraud ............................................................................................. 12

10. Telemarketing and Telephone Scams.................................................................................... 13

11. Where to Go for Help ................................................................................................................ 14

This guide is intended to help you fi nd out information about consumer

frauds and scams that could aff ect you. If you have already been impacted

by one of these schemes or think you might have been, contact information

for agencies that can help you has also been included.

A guide to resources

Consumer onsumer Fraudraudand Scams

2

1.1Better Business Bureau of Central and Northern

Alberta Consumer Tips

Th is website features frequently updated consumer tips

from the Better Business Bureau, including how to avoid

current scams and protect yourself against fraudulent

businesses. www.edmonton.bbb.org (click “For Consumers”

and then “Tips” in the box marked “Resource Library”)

1.2Canadian Consumer Handbook 2007

(Consumer Measures Committee)Here you can fi nd a broad, but thorough overview of

various issues faced by consumers in Canada. It includes

information about:

advance fee schemes;•

contracts;•

debit card fraud;•

online shopping scams; and•

telemarketing.•

A comprehensive directory of consumer agencies and

organizations is also included.

www.ic.gc.ca (click on “Consumers”, “Consumer Measures

Committee”, “Consumer Information”, and then “2007

Handbook”).

1.3Canadian Consumer Information Gateway

Th is portal website provides comprehensive sets of links

related to various consumer issues including fraud and

deceptive practices, identity theft, protecting yourself on

the Internet, and fi ling consumer complaints. Information

can be subdivided by province.

www.consumerinformation.ca

1.4Consumer Measures Committee’s Tips on

Complaints, Fraud and Identity Theft

Th is pamphlet features information on:

how to protect yourself from frauds and scams;•

how to make an eff ective consumer complaint; and•

how to reduce your risk of identity theft.•

www.cmcweb.ca (click on “Consumer Issues for Seniors” and

then “Complaints”).

1.5Crime Prevention Tips and Agency Referrals

(Alberta Government, “If in doubt, check it out” Fraud Awareness Campaign)Th is tip sheet features information on:

crime prevention; and•

how to protect yourself from fraud.•

www.seniors.gov.ab.ca (click on “Protection”, “Fraud

Awareness”, and then “If in Doubt, Check it Out”)

1.6Glossary of Fraud Schemes and Terms

(Heads Up Fraud Prevention Association)Heads-up.ca provides a comprehensive glossary of

defi nitions relating to diff erent types of consumer fraud,

schemes, and associated terms.

www.heads-up.ca/PDF/glossary.pdf

1.7Personal Information and Scams Protection:

A Canadian Practical Guide

(RCMP)Th is thorough and comprehensive document describes

sixteen Internet scams, twelve in-person scams, and three

telephone scams. A list of common fraud scenarios along

with a helpful glossary and a list of useful links is also

included.

www.rcmp.ca/scams/canadian_practical_guide_e.pdf

1. General Information and Tips for Prevention

3

2. Advance Fee Schemes

These schemes may take place via email, telephone or post. Currently, the most common advance fee

scheme is the “Nigerian Business Letter” scam. The following tip sheets and websites provide both general

and scheme-specifi c information about advance fee fraud.

2.1Advance Fee Letter Scams

(Heads Up Fraud Prevention Association)Th is website includes information and tips on how to

avoid becoming victim to the “Nigerian Business Letter”

scam.

www.heads-up.ca/PDF/advancefee.pdf

2.2Advance Fee Loans

(Reporting Economic Crime Online – RECOL)Th is website features a general description of what an

advance fee loan scheme is, as well as information and tips

about specifi c scams including:

West African Fraud;•

Prize Pitch (Lottery) Scams;•

Pyramid Schemes; and•

Ponzi Schemes.•

www.recol.ca/scams/advance_fee.aspx

2.3Nigerian Scam Letter Database

Th is website features samples of letters that have been

used in the “Nigerian Business Letter” scheme. It is helpful

to visit if you think you may have received such a letter via

e-mail or post.

www.fraudaid.com/ScamSpeak/Nigerian/

scam_letter_database.htm

Watch out for the Nigerian/West-African

Business Letter Scam! For years now,

businesses, learning institutions, and

government departments have been receiving

e-mails from senders posing as Nigerian/

West-African government or business offi cials,

off ering to share large sums of money.

4

ATM, credit card, and debit card fraud can take many diff erent forms. It can occur either in-person, over the

telephone or online. The following tip sheets and video clips provide both general and scheme-specifi c

information.

Videos

3.4Credit Card Fraud

(Heads Up Fraud Prevention Association)Th is video provides simple rules to follow to avoid

becoming a victim of credit card fraud (requires Windows

Media Player).

www.heads-up.ca/PDF/counterfeitcc.htm

(click “MPEG”)

3.5Phony Bank Inspector Fraud

(Heads Up Fraud Prevention Association)Th is video provides a dramatized example of how the

phony bank inspector scheme works, along with some tips

on how to avoid becoming a victim of this scam (requires

Windows Media Player).

www.heads-up.ca/PDF/phony.htm (click “MPEG”)

3. ATM, Credit Card, and Debit Card Fraud

Tip Sheets

3.1The Canadian Caper/Bank Inspector Fraud

(Heads Up Fraud Prevention Association)Information and tips on how to avoid being victim to

“Bank Inspector” fraud – this scam also goes under the

name of “Th e Canadian Caper”, “Th e Granny Game”, or

“Th e Pigeon Drop”. Th is is generally initiated over the

phone when the victim receives a call from a phony bank

inspector.

www.heads-up.ca/PDF/phony.pdf

3.2Counterfeit

(Reporting Economic Crime Online – RECOL)Th is website provides information about diff erent types

of credit card fraud, including counterfeit credit card

scams and no-card fraud, along with tips on how to avoid

becoming victim to these schemes. Tips on how to avoid

debit card fraud are also available on this website.

https://www.recol.ca/scams/Counterfeit.aspx

3.3The Lebanese Loop ATM/Debit Card Scam

(Heads Up Fraud Prevention Association)Information and tips on how to avoid the Lebanese Loop

debit card scam (an in-person scam that takes place at

local ATMs).

www.heads-up.ca (click on “Hot Tips”, and then the “Next”

button, then scroll down to the “Lebanese Loop” link)

“No Card Fraud” is credit card fraud committed

without the actual use of a card. No Card

Fraud accounts for 10% of all counterfeit card

losses.

5

Contract fraud can take many forms. Any time you sign any type of contract, you should be aware of what

you are agreeing to, since contracts are generally legally binding agreements. The following tip sheets

provide some general tips on signing contracts as well as information to keep in mind before you sign on

with a travel club. For information regarding home renovation contracts, please see the section on Home

Renovation Fraud.

4.2Travel Clubs Tip Sheet

(Alberta Government, “If in doubt, check it out” Fraud Awareness Campaign)Th is tip sheet contains information about Alberta’s Travel

Clubs Regulation and the protection it provides, as well as

tips to help you make sure you do not fall victim to travel

club fraud.

www.seniors.gov.ab.ca (click on “Protection”, “Fraud

Awareness”, and then “If in Doubt, Check it Out”. From there,

choose “Travel Clubs”)

4. Contract Fraud

4.1Signing a Contract

(Better Business Bureau of Central and Northern Alberta)Th is website provides some important tips and rules to

keep in mind before and after you sign a contract.

www.edmonton.bbb.org (click on “Consumers” and then

“Tips”. “Signing a Contract” is a Tipsheet from 3/7/2008)

“The Travel Clubs Regulation provides a 10-day cooling off period during which consumers can cancel

contracts without giving a reason.” (www.seniors.gov.ab.ca)

6

5. Financial Abuse

Financial abuse is a form of elder abuse. The following tip sheet and video provide information on how to

spot fi nancial abuse and what to do if you suspect someone you care about is being fi nancially exploited.

5.2Financial Abuse Video

(Alberta Government, “If in doubt, check it out” Fraud Awareness Campaign)Th is video begins with a scenario and then goes on to

describe what fi nancial abuse is, and how to recognize if

you or someone you know has been a victim of fi nancial

abuse (requires RealPlayer).

www.seniors.gov.ab.ca (click the “Protection” tab and then

“Fraud Awareness”)

5.1Financial Abuse Tip Sheet

(Alberta Government, “If in doubt, check it out” Fraud Awareness Campaign)Th is tip sheet provides the following information:

how to identify fi nancial abuse and fi nancial •

exploitation;

what to do if you believe someone is being taken •

advantage of; and

why fi nancial abuse occurs.•



“Elder abuse is defi ned as: Any action or inaction that jeopardizes the health or well being of any older

adult and can include emotional, physical, fi nancial, medication abuse, and/or neglect.”

(www.seniors.gov.ab.ca)

7

6. Home Renovation Fraud

Home renovation fraud is often associated with contract fraud. The following tip sheets and video clips

provide some important information to help ensure you do not sign a fraudulent contract. You have to be

particularly careful with home renovation contracts and contractors because liens could be placed on your

home if your contractor does not pay his or her suppliers or subcontractors.

Tip Sheets

6.1Get it in Writing

(Canadian Home Builders’ Association)Th is website provides multiple “backgrounders” to help

you educate yourself about hiring a reliable contractor and

making sure you’re signing a good contract. An excellent

resource for anyone considering home renovations or

repair work.

www.hiringacontractor.com

6.2Home Improvement Contractors

(Better Business Bureau of Central and Northern Alberta)Th is website features a link to Better Business Bureau

accredited home renovation companies, as well as tips on

reading contracts and hiring contractors.

www.edmonton.bbb.org

6.3Home Renovation Fraud Tip Sheet

(Alberta Government, “If in doubt, check it out” Fraud Awareness Campaign)Th is tip sheet provides information on:

how to choose a contractor;•

the value of a detailed contract;•

how to protect yourself from liens; and•

your cancellation rights and contract requirements.•



6.4Home Renovation Frauds

(Heads Up Fraud Prevention Association)Th is publication features information on:

how to fi nd a contractor;•

reputable sources to help you fi nd a contractor;•

the roles of the homeowner and general contractor; •

and

how to recognize fraudulent contractors.•

www.heads-up.ca/PDF/reno.pdf

“Verbal contracts can be diffi cult to prove so a

written contract is best. In some cases the law

says that the contract must be in writing and

contain specifi c information.”

(www.seniors.gov.ab.ca)

8

6.5Home Renovations Consumer Tip Sheet

(Service Alberta)Th is tip sheet provides information about home renovation

contracts in general as well as specifi c information about

working with prepaid contractors.

www.servicealberta.gov.ab.ca/pdf/tipsheets/Home_

Renovations.pdf

6.6Renovating Tips

(Canadian Home Builders’ Association Edmonton)Links to over 10 diff erent renovating tip sheets including

how to avoid shady contractors, how to choose a

professional renovator, and knowing your responsibilities

when renovating. Other tip sheets look at the Builders Lien

Act and renovation insurance.

www.chbaedmonton.ca/main/public/consumer-tips/

renovating-tips.aspx

Videos

6.7Home Renovation Fraud

(Alberta Government, “If in doubt, check it out” Fraud Awareness Campaign)Th is video provides tips to help you avoid home renovation

scams (requires RealPlayer).

www.seniors.gov.ab.ca/services_resources/fraud_

awareness/2001campaign/index.asp#videos

(click “Home Renovation Fraud”)

6.8Home Renovation Fraud

(Heads Up Fraud Prevention Association)Th is video provides tips on how to spot and avoid

fraudulent contractors as well as how to confi rm a

contractor’s validity (requires Windows Media Player).

www.heads-up.ca/PDF/reno.htm (click “MPEG”)

“Remember, an estimate is not a contract. If you accept an estimate, make sure your contract includes all

the facts and promises stated in the estimate.”

(www.servicealberta.gov.ab.ca)

9

7. Identity Theft

Identity theft is when someone uses your name and personal information to commit fraud or theft. Identity

thieves may try to access information through the Internet, by stealing wallets or mail, or by impersonating

landlords or employers. The following publications and videos will help you better understand what identity

theft is, how you can avoid becoming a victim, and what to do if you think you have been already been a

victim of identity theft.

Publications

7.1Consumer Identity Theft Kit

(Consumer Measures Committee and PhoneBusters)Th is comprehensive publication includes a frequently

asked questions section and information on:

how identity theft occurs;•

how to reduce your risk of identity theft;•

how to protect information on your computer; and•

the identity theft statement (including a template •

identity theft statement).

www.cmcweb.ca (click on “Identity Theft Kits”)

7.2Identity Fraud

(Reporting Economic Crime Online – RECOL)Features tips about how avoid identity fraud, as well as

information about fraudulent credit card applications and

bank account takeovers.

https://www.recol.ca/scams/Identity_Fraud.aspx

7.3Identity Theft: A Checklist

(Consumer Measures Committee)Includes signs of identity theft and tips on how to guard

your personal information and your computer.

www.cmcweb.ca (click on “Identity Theft Kits”)

7.4Identity Theft: Could it happen to you?

(PhoneBusters)Features tips on how to fi gure out whether your identity is

being used, information on what to do if you suspect you

have been a victim of identity theft, as well as tips on how

to minimize risk of identity theft.

www.phonebusters.com/english/recognizeit_identitythe.

html

“The identity theft statement is a form created

by the Government, which helps you create

written documentation of an identity theft

incident” (www.cmcweb.ca)

10

7.7Identity Theft Tip Sheet

(Alberta Government, “If in doubt, check it out” Fraud Awareness Campaign)Th is tip sheet provides information on the following:

what identity theft is;•

how to fi gure out whether your identity is being used •

without your knowledge;

what to do if you think an identity theft has occurred; •

and

how to protect yourself.•


awareness/

Videos

7.8Changing Faces

(Alberta Government and Edmonton Police Service)Th is 18-minute long video was produced to help educate

Albertans about how to spot and prevent identity theft.

Th e video is currently available online in multiple formats

and can also be ordered as a DVD.

www.servicealberta.gov.ab.ca/1212.cfm

7.5Identity Theft Information

(Heads Up Fraud Prevention Association)Th is tip sheet includes information about how to prevent

identity theft by becoming aware of the documents,

information, and tools identity thieves use. Also includes

information on what to do if you fall victim to identity

theft as well as a set of links to other informative websites.

www.heads-up.ca (click on “Identity Theft” from the left

side-bar menu)

7.6Identity Theft Consumer Tip Sheet

(Service Alberta)Th is publication provides information about:

correcting information held at a credit reporting •

agency;

what to do if you think your identity has been stolen; •

and

how to protect your information and your identity.•

www.servicealberta.gov.ab.ca/pdf/tipsheets/Identity_theft.

pdf

“Be careful what identifi cation you provide, especially if it is one of the main identity documents – a birth

certifi cate, driver’s licence or social insurance number. These source documents can be used to produce

other ID and gain access to more of your personal and fi nancial information.”

(www.servicealberta.gov.ab.ca)

11

8.1Consumer Information

(Consumer Measures Committee’s Consumer Issues for Seniors series)Th is tip sheet includes shopping advice, tips on how

to shop online safely, and where to go for further

information.

www.cmcweb.ca (click “Consumer Issues for Seniors”)

8.2Cyber Fraud Tip Sheet

(Alberta Government, “If in doubt, check it out” Fraud Awareness Campaign)Th is tip sheet provides information on what types of

websites are most often involved with fraud and how to

identify potential scams.


awareness/ (click the “If in Doubt, Check it Out” link)

8.3Internet Shopping Consumer Tip Sheet

(Service Alberta)Th is tip sheet includes information on the following:

online sales contracts;•

how to protect your privacy; and•

how to tell if the payment system is secure.•

www.servicealberta.gov.ab.ca/pdf/tipsheets/Internet_

Shopping.pdf

8.4Online Shopping Tip Sheet

(Alberta Government, “If in doubt, check it out” Fraud Awareness Campaign)Th is publication provides an overview of the Internet Sales

Contract Regulation as well as information on:

how to cancel a contract; and•

how to shop online safely.•


awareness/ (click the “If in Doubt, Check it Out” link)

Videos

Cyber Fraud

(Alberta Government, “If in doubt, check it out” Fraud Awareness Campaign)Th is video provides tips on how to spot fraudulent

emails and protect yourself from cyber fraud (requires

RealPlayer).


awareness/

(click the “If in Doubt, Check it Out” link, then click “Cyber

Fraud”)

8. Internet, Email and Online Shopping Fraud

Internet and email fraud are quite commonplace nowadays as more and more people conduct their fi nancial

transactions online. For information on the Nigerian Business Letter scam and other e-mail letter scams that

ask for you to advance funds before receiving any product or service, please see Advance Fee Schemes.

Tip Sheets

12

Tip Sheets

9.1Investment Fraud

(Reporting Economic Crime Online – RECOL)Th is site features information about investment fraud and

related schemes including the Prime Bank Instrument

Investment scam and stock exchange transaction fraud.

https://www.recol.ca/scams/Investment_Fraud.aspx

9.2Investment Fraud Tip Sheet

(Alberta Government, “If in doubt, check it out” Fraud Awareness Campaign)Th is tip sheet provides information on how to identify

potential fi nancial frauds or scams and includes the top ten

lines used by fraudulent investment promoters.

www.seniors.gov.ab.ca/services_resources/fraud_awareness/

(click the “If in Doubt, Check it Out” link)

9.3Mortgage Fraud

(Heads Up Fraud Prevention Association)Th is tip sheet includes information on “straw buyer”

mortgage fraud scams, home equity fraud, and repair

schemes.

www.heads-up.ca/PDF/mortgage.pdf

9.4Mortgage Fraud Consumer Tip Sheet

(Service Alberta)Th is tip sheet includes information on the following:

“straw buyers” and phony loan applicants;•

fl ipping property;•

down payments; and•

how to avoid being a victim of mortgage fraud.•

www.servicealberta.gov.ab.ca/pdf/tipsheets/mortgage_

fraud.pdf

9.5Prime Bank Schemes

(Heads Up Fraud Prevention Association)Th is website contains a thorough description of the Prime

Bank scheme with information on how to identify and

avoid falling victim to this investment fraud.

www.heads-up.ca/PDF/primebank.pdf

Videos

Investment Fraud

(Alberta Government, “If in doubt, check it out” Fraud Awareness Campaign)Th is video begins with a sample situation and provides tips

on how to recognize and avoid investment fraud (requires

RealPlayer).


awareness/ (click “Investment Fraud”)

9. Investment and Mortgage Fraud

Investment fraud is often related to “Prime Bank” scams (a.k.a. fraud based on valueless documents) and

stock exchange transaction schemes. Mortgage fraud may involve home equity scams or “straw buyers”.

The tip sheets and videos listed below will help alert you to potentially fraudulent investment schemes and

mortgage scams.

“In the mortgage industry, phony loan

applicants are known as ‘Straw Buyers’”

(www.servicealberta.ca)

13

Tip Sheets

10.1Fraud Alert (Collect Calls)

(Heads Up Fraud Prevention Association)Th is website provides a description of collect call fraud

whereby unsuspecting individuals end up accepting charges

for long distance phone calls they did not make.

www.heads-up.ca (click on “Hot Topics” and then the “Next”

button. Scroll down to the “Collect Call Fraud” link)

10.2PhoneBusters – List of Scams

PhoneBusters is the Canadian anti-fraud calling centre and

is jointly operated by the Ontario Provincial Police and the

Royal Canadian Mounted Police. Th is organization plays

an important role in keeping Canadians educated about

specifi c telemarketing pitches. Th e link below provides a list

and descriptions of current scams that you should be aware

of.

www.phonebusters.com/english/recognizeit.html

10.3Telemarketing Fraud

(Heads Up Fraud Prevention Association)Th is tip sheet off ers general information on telemarketing

fraud along with some of the most commonly used

“off ers” (ie. free gift, vacation, etc.) made by telemarketing

scammers.

www.heads-up.ca/PDF/telemarketing.pdf

Videos


(Alberta Government, “If in doubt, check it out” Fraud Awareness Campaign)Th is video begins with a common scenario and then lists

questions to ask on the telephone to help ensure that you

do not become a victim of telephone fraud. Tips on how

to recognize telephone fraud are also provided (requires

RealPlayer).


awareness/2001campaign/index.asp#videos

(click “Telemarketing Fraud”)


(Heads Up Fraud Prevention Association)Th is video provides general information about

telemarketing fraud and tips on how to spot and avoid

telephone scams (requires Windows Media Player).

www.heads-up.ca/PDF/telemarketing.htm

(click “MPEG”)

10. Telemarketing and Telephone Scams

Telemarketing and telephone scams are very common and anyone can fall victim to these schemes.

The following tip sheets and videos provide descriptions of various scams and tips on how to avoid

telemarketing fraud.

14

National

Equifax

(for identity theft: to request “fraud alert” be

placed on fi le)

Toll-free: 1-800-465-716

Identity Theft Statement

Helps you notify fi nancial institutions, credit card issuers

and other companies that you have been a victim of identity

theft.

www.phonebusters.com/images/

IDTheftStatement.pdf

PhoneBusters

To report suspicious calls

Toll-free: 1-888-495-8501

www.phonebusters.com

Reporting Economic Crime Online (RECOL)

Supported by the RCMP.

Allows individuals to fi le fraud complaints online

Toll-free: 1.888.495.8501

www.recol.ca

TransUnion

(for identity theft: to request “fraud alert” be

placed on fi le)

Toll-free: 1-877-525-3823

National Do Not Call List

Th e National Do Not Call List (DNCL) gives consumers

a choice about whether to receive telemarketing calls. If

you are a consumer you can choose to reduce the number

of telemarketing calls you receive by registering your

residential, wireless, fax or VoIP telephone number on

the National DNCL. You can also fi le a complaint about

telemarketing calls. Call toll-free 1-866-580-DNCL

(1-866-580-3625)

www.lnnte-dncl.gc.ca

In Edmonton

Better Business Bureau

Also serves the rest of Central and Northern Alberta

Toll-free: 1-800-232-7298 (Edmonton)

www.edmonton.bbb.org

Elder Abuse Intervention Team

(for fi nancial abuse cases)

Phone: 780-477-2929

www.police.edmonton.ab.ca/Pages/Elder/ElderAbuse.asp

Seniors Association of Greater Edmonton (SAGE)

15 Sir Winston Churchill Square

Phone: 780-423-5510

www.mysage.ca

SAGE’s listing of Consumer Information Contacts:

www.mysage.ca/fi les/document/Consumer%20Resources.

pdf

In Calgary

Better Business Bureau

Also serves rest of Southern Alberta

Phone: 403-531-8780

www.betterbusinessbureau.ca

The Kerby Centre

Phone: 403-265-0661

www.kerbycentre.com

Province-wide

Family Violence Information Line (24 hours)

(for fi nancial abuse)

Toll-free in Alberta: 310-1818

Service Alberta’s Consumer Contact Centre

Home renovation/contract fraud, online shopping fraud

Toll-free: 1-877-427-4088

Edmonton Phone: 780-427-4088

www.servicealberta.ca

11. Where to Go for Help

In any instance of fraud, victims are asked to call their local police departments and report the situation.

There are also many other agencies and organizations that can help if you or someone you know has been

aff ected by fraud. These agencies can also provide further assistance if you have questions or concerns

regarding fraud and economic crime.

15

Notes

The Legal Resource Centre

Th e Legal Resource Centre is a non-profi t society

whose purpose is to provide Albertans with reliable

information about their rights and responsibilities

under the law.

#201 10350 – 124 Street

Edmonton, AB T5N 3V9

Phone: 780.451.5285

Fax: 780.451.2341

The LRC gratefully acknowledges

Public Library Development Initiative

Alberta Law Foundation

The People’s Law School, Vancouver, BC

You should not rely on this booklet for legal advice. It provides

general information on Alberta law only.

Notes

This booklet is part of a series from The Law and You: Seniors and Older Adults project. Other booklets from the series include:• Making a Will• Making a Personal Directive• Making a Power of Attorney• Being an Executor• Being an Attorney• Being an Agent• Protecting Yourself from Consumer Fraud and Scams• Grandparents’ Rights

protecting yourself from consumer fraud and scams in alberta - a guide to resources

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